Risk-return-ratio stop loss

2021年12月28日

In today learning we learn bout good trades and bad trades.

The essential is:
There are many good trades
But here are also few bad trades - we need have strategy to survive bad trades to continue tomorrow as well, for instance stop loss.

With risk-return ratio, we can allow us to find strength of price so that it keeps go another let us say +2% from a certain and strong buy-level.

We focus on long (bull) positions and from local bottoms after a dump.

Study chart and learn!

2021年12月28日

註釋

In the mean of short pos, I use long rejection to consider start short pos

2021年12月29日

註釋

#1 never think you are better than the market
#2 plan money, money management is important
#3 use strategy to make profit and manage risk, loss
#4 have sources for new cash liquidity or else you will be bankrupt quick

2021年12月29日

註釋

So you got 4 options to make money:
1. make profit on intereest rates in bank account $10,000 gives maybe $200
2. lose big by thinking you are better than market $10,000 turns into $4,000 eoy
3. DCA by going only long, but use new cash liquidity to keep adding more funds at lows, maybe $10,000 turns into $15,000
4. Learn to long and short by trading only weekly chart/monthly chart frame, maybe $10,000 turns into $20,000

2021年12月29日

註釋

To put things in perspective, I have real example here

2021年12月30日

註釋

How to set up the long/short pos box diagrams

2021年12月30日

註釋

Today's motto:
If you win 100 trades
You can afford lose 5 trades